With the online casino industry exploding within the USA, it makes sense to invest. Growth markets are often the best place to invest, as it offers the best chance of returns coming along everywhere, from the short to long term. However, this doesn’t mean that it’s good to invest anywhere without thinking. Use our guide to learn where the best areas to invest are in the US casino business.
US Casino Growth
Before we start looking at investment choices, it’s important to understand the context of gambling in USA. Although Las Vegas has long been a haven for gamblers, the burgeoning online gambling market was something of a forbidden door in the USA. This all changed near the end of the 2010s, as court cases were fought and won, that made online gambling a realistic prospect.
This saw online gambling become legal and moving into the 2020s, the majority of US states allow online gambling in some shape or form. This has allowed the market to grow at a very fast rate, and helped to create what can only be described as a market that is exploding.
As such, a lot of different companies have seen success in this area. We’ve taken a look into areas that you should think about investing in, if you want to make the most of the US online gambling market.
Sports Betting
This is an area that’s often ignored when it comes to the online gambling market. A lot of people focus solely on the casino market, and sports betting companies get almost forgotten about, as well as Esport betting. As such, it makes it a sensible area to explore investing in. What should you look for though?
The first thing you should think about, is where the revenue is. Investing in an online sportsbook is always a risk. While a lot of them are profitable, they also have to keep a lot of liquid cash available to make payouts. If profitable sports bettors descend on the sportsbook as well, it could lead to its days being numbered.
As such, it makes much more sense to look into investing in companies that provide sports betting technology. The platform creators and operators are where the best chances for investment are. By investing in this area, you are much more likely to be able to invest in a profitable company both in the long and short term.
On top of this, data analysis companies also provide a good investment opportunity. This is, because they are used by both sides of the sports betting spectrum. Sportsbooks and bettors use data analysis, in order to operate within sports betting. This includes setting the odds on the side of the sportsbooks, and placing bets that offer value for the bettors.
By investing in these companies, you are much more likely to be able to make a profit, as they don’t have to worry about their data causing them to make large scale payouts. They just get paid for the data that they put together. It makes it a much more sensible investment with a lower risk.
Casino Software Developers
This might sound similar to investing in the software creators for sports betting, but this is actually quite different. Casino software developers create a range of different games for casinos to use in their online portfolios. There are a lot of large developers out there, which will normally have share prices that are set at a level that will make it hard to make a profit. So, what should you do?
To put it simply, here you shouldn’t be looking at the big names, you should be looking at smaller companies that are creating innovative games. There are two big reasons for this. Firstly, they are often helmed by former employees of big-name companies. This means they will have experience of the industry, and they will therefore be able to provide high quality titles.
Secondly, the smaller companies that start to make a name for themselves, are much more likely to be taken over by a bigger company. This merger or acquisition is usually where the profit is for investors. By being an investor in a smaller company early in its lifespan, you can get a much bigger return on your investment once bigger companies start to take notice.
This does mean that you will have to carry out research to be at the top of the list when it comes to investment. Make sure you are aware when former employees set up companies, and look to be at the front of the queue to invest.